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3.11 Compliance Department
To ensure a compliance culture in the Bank and effectively manage its compliance risk, a
separate Compliance Department has been set up in the Bank. Further, a comprehensive
Compliance Policy having definite compliance metrics/framework along with well-defined
role and responsibilities of the Compliance Officer, Heads of Departments, Department
Compliance Officers etc. has been framed and communicated throughout the Bank. The
function of the Compliance Department is to ensure strict observance of all statutory provisions
contained in various legislations as well as to ensure observance of other regulatory guidelines
issued from time to time and NHB’s internal policies and Fair Practices Code. The Compliance
Department is closely working with other Departments and is ensuring that the compliance
issues are addressed and resolved effectively and expeditiously. Further, for specific areas,
the Bank has designated officers in compliance of regulatory/statutory requirement viz
CISO, Chief Risk Officer, Principal Officer - KYC, FIU-Ind, Nodal Officer - Central Economic
Intelligence Bureau etc.
3.12 Vigilance Department
Vigilance Administration forms an integral function in the Bank. As preventive and punitive
vigilance activities are evolving with the changes in the financial and economics setup, the
functioning of the department is further strengthened by posting of a senior officer of AGM
rank. The total strength of the Department now being of 3 officers.
During the year, as part of preventive vigilance functions, the department navigated following
improvements:
a) Strengthening of offsite surveillance tools by way of formulation of a Questionnaire for
HFCs for self-regulation that can be circulated to HFCs before commencement of annual
inspection for qualitative supervision. Accordingly, the check-list questionnaire for
self-regulation for Housing Finance Companies (HFCs), involving self-declaration on
compliance with various provisions of the National Housing Bank Act, 1987 applicable
to the HFCs and other provision contained in the Master Direction on Non-Banking
Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021 is
expected to expand supervisory outreach by NHB.
b) Review of Staff Accountability Policy of the Bank thoroughly to make it comprehensive
and update with the recent developments /structural changes such as Advisory Board
for Banking Frauds (ABBF).
c) Integration of functioning amongst the various verticals and structured reporting to
Vigilance Department on issues as may be required for qualitative improvement in
Vigilance administration of NHB.
248 | Annual Report 2020-21
To ensure a compliance culture in the Bank and effectively manage its compliance risk, a
separate Compliance Department has been set up in the Bank. Further, a comprehensive
Compliance Policy having definite compliance metrics/framework along with well-defined
role and responsibilities of the Compliance Officer, Heads of Departments, Department
Compliance Officers etc. has been framed and communicated throughout the Bank. The
function of the Compliance Department is to ensure strict observance of all statutory provisions
contained in various legislations as well as to ensure observance of other regulatory guidelines
issued from time to time and NHB’s internal policies and Fair Practices Code. The Compliance
Department is closely working with other Departments and is ensuring that the compliance
issues are addressed and resolved effectively and expeditiously. Further, for specific areas,
the Bank has designated officers in compliance of regulatory/statutory requirement viz
CISO, Chief Risk Officer, Principal Officer - KYC, FIU-Ind, Nodal Officer - Central Economic
Intelligence Bureau etc.
3.12 Vigilance Department
Vigilance Administration forms an integral function in the Bank. As preventive and punitive
vigilance activities are evolving with the changes in the financial and economics setup, the
functioning of the department is further strengthened by posting of a senior officer of AGM
rank. The total strength of the Department now being of 3 officers.
During the year, as part of preventive vigilance functions, the department navigated following
improvements:
a) Strengthening of offsite surveillance tools by way of formulation of a Questionnaire for
HFCs for self-regulation that can be circulated to HFCs before commencement of annual
inspection for qualitative supervision. Accordingly, the check-list questionnaire for
self-regulation for Housing Finance Companies (HFCs), involving self-declaration on
compliance with various provisions of the National Housing Bank Act, 1987 applicable
to the HFCs and other provision contained in the Master Direction on Non-Banking
Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021 is
expected to expand supervisory outreach by NHB.
b) Review of Staff Accountability Policy of the Bank thoroughly to make it comprehensive
and update with the recent developments /structural changes such as Advisory Board
for Banking Frauds (ABBF).
c) Integration of functioning amongst the various verticals and structured reporting to
Vigilance Department on issues as may be required for qualitative improvement in
Vigilance administration of NHB.
248 | Annual Report 2020-21
